一拖股份(601038) - 2020 Q2 - 季度财报

Company Profile and Key Financial Indicators Company Information and Contact Details The company's fundamental business registration, stock overview, and contact information for key personnel are detailed | Item | Information | | :--- | :--- | | Company Chinese Name | First Tractor Company Limited | | Company Chinese Abbreviation | YTO Shares | | Legal Representative | Li Xiaoyu | | A-share Code | 601038 | | H-share Code | 00038 | Key Accounting Data and Financial Indicators H1 2020 performance surged, with total revenue up 20.16% and net profit increasing 1548.75%, due to sales and cost control 2020 H1 Key Accounting Data | Key Accounting Data | Current Period (Jan-Jun) (Yuan) | Prior Period (Yuan) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 4,116,725,509.00 | 3,425,973,267.68 | 20.16 | | Net Profit Attributable to Shareholders of Listed Company | 323,361,690.16 | 19,612,525.70 | 1,548.75 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 290,273,866.74 | -65,158,017.08 | N/A | | Net Cash Flow from Operating Activities | 452,641,885.46 | 438,522,196.92 | 3.22 | | Total Assets | 11,954,679,592.66 | 11,629,022,385.51 | 2.80 (vs. end of prior year) | 2020 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/share) | 0.3280 | 0.0199 | 1,548.24 | | Weighted Average Return on Net Assets (%) | 7.64 | 0.49 | Increase 7.15 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | 6.86 | -1.62 | Increase 8.48 percentage points | - Performance growth was driven by effective epidemic response, optimized product mix, and innovative marketing, leading to 22.95% YoY sales growth for large/medium tractors and 19.62% for diesel engines, alongside significant cost and personnel optimization[22] 2020 H1 Non-recurring Gains and Losses | Non-recurring Gain/Loss Item | Amount (Yuan) | | :--- | :--- | | Gains/losses on disposal of non-current assets | 920,722.93 | | Government grants | 16,787,436.56 | | Fair value changes and investment income from trading financial assets, etc | 21,458,143.84 | | Other non-operating income/expenses and items | 2,543,354.38 | | Impact on minority interests and income tax | -8,621,834.29 | | Total | 33,087,823.42 | Company Business Overview Principal Business and Operating Model The company's core business is R&D, manufacturing, and sales of agricultural and power machinery, maintaining stable operations - The company primarily engages in the R&D, manufacturing, and sales of agricultural machinery (full range of tractors and key components) and power machinery (non-road diesel engines and components). The controlling subsidiary, Finance Company, provides intra-group financial services[29] - The company's core competitiveness lies in its industry-leading technological R&D capabilities and the most complete tractor production and manufacturing system in China, with large and medium-sized tractors and non-road diesel engines holding a leading position in the industry[31] Discussion and Analysis of Operations Overview of Operations H1 2020 saw effective COVID-19 management, boosting tractor sales and market share, resulting in significant revenue and profit growth - The company coordinated epidemic prevention and work resumption, rapidly increasing production capacity from 30% in February to full capacity in March by assisting suppliers and streamlining logistics, ensuring supply for the spring plowing market[34] - The company accelerated its marketing service model transformation, utilizing new media platforms for live streaming and online ordering, while strengthening offline service guarantees, demonstrating its responsibility as an industry leader[34] - In the second half of the year, the company will focus on strengthening marketing capabilities, internal operational management, deepening reforms, accelerating key R&D projects (e.g., power shift, CVT stepless transmission, intelligent agricultural machinery), and preventing operational risks[37] Analysis of Principal Business During the reporting period, the company's principal business showed strong performance, with operating revenue up 20.68% and effective cost and expense control Financial Statement Key Item Variation Analysis | Item | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,074,490,101.51 | 3,376,284,242.98 | 20.68 | Increased sales of leading products | | Operating Cost | 3,257,678,123.70 | 2,906,028,393.82 | 12.10 | Effective cost control, lower increase than revenue | | Administrative Expenses | 139,146,303.86 | 168,787,482.38 | -17.56 | Strengthened expense control, reduced labor costs | | Financial Expenses | 20,468,909.37 | 41,393,377.07 | -50.55 | Reduced loan size, decreased interest expenses | | Investment Income | 347,706,638.26 | 38,659,947.90 | 799.40 | Investment income from Shentong Company's bankruptcy liquidation | | Credit Impairment Losses | -328,278,476.45 | -16,409,018.88 | N/A | Shentong Company's bankruptcy liquidation, provision for creditor's rights losses | | Asset Impairment Losses | -75,014,691.87 | -33,828,164.42 | N/A | Shentong Company's bankruptcy liquidation, provision for impairment of long-term equity investment | Analysis of Assets and Liabilities As of the reporting period end, total assets were 11.95 billion Yuan, with a 0.90 percentage point decrease in asset-liability ratio, indicating improved solvency Major Asset and Liability Item Changes | Item Name | Period-end Amount (Yuan) | Change from Prior Year-end (%) | Explanation | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,023,163,108.94 | -41.37 | Repayment of some borrowings | | Short-term Borrowings | 1,280,445,446.52 | -52.86 | Repayment of some short-term borrowings | | Accounts Payable | 1,935,272,247.30 | 38.87 | Increased procurement volume, accounts payable not yet due | | Non-current Liabilities Due Within One Year | 352,886,423.19 | 668.05 | Long-term borrowings due within one year increased YoY | | Long-term Borrowings | 99,900,000.00 | -88.49 | Long-term borrowings due in over one year decreased | - As of the reporting period end, some of the company's assets were restricted, including 229 million Yuan in monetary funds (primarily guarantees), 13.97 million Yuan in notes receivable (pledged), and 60.04 million Yuan in net fixed and intangible assets (mortgaged for borrowings)[50] Analysis of Major Holding and Participating Companies Diesel Engine Company was the primary profit driver, while Finance Company's net profit decreased due to increased credit impairment losses Subsidiaries with Over 10% Impact on Company's Net Profit | Company Name | Reporting Period Operating Revenue (Yuan) | Reporting Period Operating Profit (Yuan) | Reporting Period Net Profit (Yuan) | | :--- | :--- | :--- | :--- | | Diesel Engine Company | 930,960,000 | 66,260,000 | 63,350,000 | - Shentong Company entered bankruptcy liquidation on January 13, 2020, and is no longer included in the company's consolidated financial statements[58] - Several subsidiaries experienced significant changes in operating performance: Changxing Company and Diesel Engine Company saw net profits increase by 24.70 million Yuan and 25.19 million Yuan YoY, respectively, due to increased sales; Finance Company's net profit decreased by 24.20 million Yuan YoY due to increased credit impairment losses[59] Risk Analysis The company faces risks from market competition, raw material prices, technological upgrades, and subsidiary losses, addressed by enhanced marketing and asset optimization - Market Risk: Domestic agricultural machinery market faces overcapacity and intense price competition; global epidemic and trade frictions may hinder internationalization efforts[62] - Technology Upgrade Risk: The transition to National IV emission standards for non-road diesel engines poses higher demands on the company's product technology, manufacturing costs, and supply chain[63] - Operational Risk: Persistent losses in some subsidiaries and the disposal of inefficient assets and businesses may impact current period performance[63] Significant Matters Significant Related Party Transactions The company engages in ongoing related party transactions with its controlling shareholder and affiliates, covering procurement, sales, services, and finance, all at market prices 2020 Jan-Jun Major Daily Related Party Transactions (Unit: Yuan) | Transaction Content | Related Party | 2020 Estimated Upper Limit | Actual Amount Incurred | | :--- | :--- | :--- | :--- | | Procurement of Goods | China YTO Group | 950,000,000 | 249,320,000 | | Sales of Goods | China YTO Group | 370,000,000 | 138,060,000 | | Comprehensive Services | China YTO Group | 200,000,000 | 88,490,000 | | Procurement of Energy | China YTO Group | 220,000,000 | 82,410,000 | | Deposit Services (Finance Company to China YTO Group) | China YTO Group | 2,800,000,000 | 1,485,250,000 | | Loan Services (Finance Company to China YTO Group) | China YTO Group | 1,300,000,000 | 953,240,000 | - The company provided entrusted loans to its subsidiary Changtuo Company totaling no more than 21 million Yuan[100] Significant Contracts and Their Performance The company maintains an equity trusteeship for Changtuo Company and has provided 317.21 million Yuan in external guarantees, primarily for dealers and subsidiaries - The company continues to hold the trusteeship of 33.33% equity in Changtuo Company, owned by its indirect controlling shareholder, Sinomach Group, with no changes in this arrangement[101] Guarantee Situation Summary | Item | Amount | | :--- | :--- | | Total Guarantees (A+B) | 317,206,582.00 Yuan | | Ratio of Total Guarantees to Company's Net Assets (%) | 6.27 | | External Guarantee Balance (A) | 107,596,582.00 Yuan | | Guarantee Balance for Subsidiaries (B) | 209,610,000.00 Yuan | Share Changes and Shareholder Information Shareholder Information The company's total share capital structure remained unchanged, with 30,638 common shareholders and controlling shareholder China YTO Group holding 41.66% - As of the reporting period end, the company had a total of 30,638 common shareholders (30,276 A-share holders and 362 H-share holders)[124] Top Five Shareholders' Shareholding | Shareholder Name | Period-end Shareholding (Shares) | Proportion (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | China YTO Group Co., Ltd | 410,690,578 | 41.66 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 387,807,319 | 39.34 | Overseas Legal Person | | China Construction Bank - BOCOM Schroders Economic New Power Mixed Fund | 20,221,919 | 2.05 | Other | | China Merchants Bank - BOCOM Schroders Innovation Leading Mixed Fund | 11,157,951 | 1.13 | Other | | China Construction Bank Henan Branch | 9,444,950 | 0.96 | Other | - The company plans to issue 137,795,275 A-shares to its controlling shareholder, China YTO Group Co., Ltd., at 5.08 Yuan/share, a proposal approved by the shareholders' meeting[123] Financial Report Financial Statements This section presents the company's H1 2020 consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in shareholders' equity Consolidated Balance Sheet Summary (June 30, 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 11,954,679,592.66 | | Total Liabilities | 6,928,825,142.93 | | Total Shareholders' Equity | 5,025,854,449.73 | | Shareholders' Equity Attributable to Parent Company | 4,390,438,798.59 | Consolidated Income Statement Summary (Jan-Jun 2020) | Item | Amount (Yuan) | | :--- | :--- | | Total Operating Revenue | 4,116,725,509.00 | | Total Operating Costs | 3,766,196,746.53 | | Total Profit | 334,250,679.88 | | Net Profit | 321,648,966.58 | | Net Profit Attributable to Parent Company Shareholders | 323,361,690.16 | Consolidated Cash Flow Statement Summary (Jan-Jun 2020) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 452,641,885.46 | | Net Cash Flow from Investing Activities | -184,193,067.76 | | Net Cash Flow from Financing Activities | -593,000,244.29 | | Net Increase in Cash and Cash Equivalents | -326,241,929.52 | Notes to Consolidated Financial Statements Financial statement notes detail key items, showing a significant increase in accounts receivable primarily from current balances, a slight decrease in inventory, and agricultural machinery as the core revenue and profit driver Accounts Receivable As of period-end, accounts receivable increased significantly to 982 million Yuan from 407 million Yuan at period-start, with the majority being current and a 30.49% overall provision rate for bad debts Accounts Receivable Aging Analysis and Provision for Bad Debts | Aging | Period-end Book Balance (Yuan) | Provision for Bad Debts (Yuan) | Provision Rate (%) | | :--- | :--- | :--- | :--- | | Within 1 Year | 872,919,240.42 | 13,595,052.78 | 1.56 | | 1 to 2 Years | 32,669,142.70 | 10,626,269.13 | 32.53 | | 2 to 3 Years | 17,612,935.26 | 11,854,434.20 | 67.31 | | Over 3 Years | 489,307,148.84 | 394,556,424.19 | 80.64 | | Total | 1,412,508,467.22 | 430,632,180.30 | 30.49 | Segment Information The company's operations are segmented into agricultural machinery, power machinery, and financial services, with agricultural machinery being the core business and primary contributor to revenue and profit in H1 2020 2020 H1 Segment Performance Summary (Unit: Yuan) | Item | Agricultural Machinery | Power Machinery | Financial Services | Inter-segment Elimination | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,728,201,783.22 | 950,990,093.75 | 67,774,123.55 | 630,240,491.52 | 4,116,725,509.00 | | Total Profit | 297,592,409.01 | 57,546,157.30 | 6,953,116.14 | 27,841,002.57 | 334,250,679.88 |